Changes to the Sectional Titles Schemes Management Act 8 of 2011 (STSMA) on 7 October 2016 made fidelity insurance compulsory for bodies corporate. This means that the body corporate must insure itself against the potential loss of its funds by way of fraudulent or dishonest conduct by the trustees, managing agent or anybody who has access to these funds. Before the...
Short term letting is a controversial topic in sectional title for various reasons, one of which involving the uncertainty as to what is allowed and what is not. Body corporate trustees have been at loggerheads with owners, trying to get decisive rulings via the Community Schemes Ombud Service (CSOS) to solve their disputes. Regrettably, the CSOS adjudications have varied widely in...
Each new year presents its own challenges for a body corporate. Body corporate planning allows unresolved matters from the previous year to be attended to and for all the role players to reset for the year ahead. What pro-active planning can be done? Every year body corporate trustees must ensure that they deal with legislative requirements that make their scheme compliant. The trustees,...
Sectional title terminology can be quite confusing and two terms that often get confused by owners are ‘section’ and ‘unit’. While an apartment can be called either of these two terms, there are distinct differences between a section and a unit. Section A section is indicated on the sectional title plan of the scheme; it is demarcated with a solid line...
Not all sectional title investors elect to live in the complex where they purchased a unit. It is quite common to buy in sectional title schemes with the intention of letting. Body corporate requirements Renting out an apartment is not always as simple as it may seem. The body corporate may have rules around how long an apartment may be rented; it...